Gold hits six-week high, silver sets record on U.S. rate cut expectations
Gold rose to a six-week high on Monday as markets increased bets on a U.S. interest rate cut in December, while silver reached a new record. A weaker U.S. dollar also supported prices, Qazinform News Agency correspondent reports.
Spot gold was up 0.6% at $4,255.98 per ounce by early afternoon GMT, its highest level since late October. U.S. gold futures for February delivery added 0.8% to $4,290.70. Silver climbed 1.9% to $57.46 per ounce after earlier touching a record high of $57.86.
Analysts say expectations of lower U.S. interest rates are making non-yielding assets such as gold and silver more attractive to investors. Silver is also benefiting from hopes of stronger industrial demand next year.
Market expectations for a December rate cut have strengthened in recent weeks after a series of softer U.S. economic indicators and more cautious signals from several Federal Reserve officials. Futures markets are now pricing in a high probability of a rate reduction.
At the same time, discussions around upcoming changes in the leadership of the Federal Reserve have added to expectations that monetary policy could become more accommodative. The White House has also indicated that lower interest rates remain a policy preference.
Later this week, investors will closely watch U.S. employment data and core inflation figures for further guidance on the future path of interest rates. The U.S. dollar slipped to a two-week low, making gold and silver cheaper for buyers using other currencies.
Among other precious metals, platinum rose 1.3% to $1,693.95 per ounce, while palladium gained 1.1% to $1,466.28.
Earlier, Qazinform News Agency reported that global central bank demand for gold increased in the third quarter of 2025, with Kazakhstan ranking as the largest buyer, according to the World Gold Council.
